Cryptocurrency exchanges are a vital piece of the ecosystem’s infrastructure. Unfortunately, the centralized nature of these companies makes it easier for governments to effectively influence them. As such, it is not surprising to see A.G Schneiderman probe 13 different exchanges and trading platforms. This includes the likes of Coinbase, Gemini, iFinex Inc, et cetera.
Centralized cryptocurrency exchanges offer a high degree of convenience. It makes it easier for consumers to buy Bitcoin and altcoins through traditional payment methods. Most of these platforms support bank transfers, with some even dealing with credit cards. Unfortunately, these platforms are also subject to a lot of scrutiny, for obvious reasons. There are plenty of rumors regarding malicious trading, manipulation, bots, and so forth.
A.G Schneiderman Probes Exchanges
As such, A.G Schneiderman wants to take a closer look at these trading platforms. Protecting customers from potential financial harm will always remain the top priority. Additionally, there needs to be a high degree of fairness when dealing with competing trading platforms. Some exchanges have poor infrastructure, lackluster security precautions, and so forth. This probe by Schneidermann makes a lot of sense at such a crucial time for the industry.
Attorney General Schneiderman comments on this development as follows:
“With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money. Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms. Our Virtual Markets Integrity Initiative sets out to change that, promoting the accountability and transparency in the virtual currency marketplace that investors and consumers deserve.”
Among the exchanges being probed are some big names. Coinbase, Gemini, iFinex, Bittrex, Kraken, and others are all on the list. It is evident not all of these exchanges will have something to hide. At the same time, there have been irregularities with a fair few platforms in the past year or so. It will be interesting to see what this investigation brings to light in the coming months.
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